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{{About|the present Lloyds Bank, formerly known as Lloyds TSB|the Lloyds Bank prior to merging with TSB|Lloyds Bank (historic)|other uses}}
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'''Lloyds Bank plc''' is a [[retail banking|retail bank]] in the United Kingdom. It has traditionally been considered one of the [[Big Four (banks)|Big Four]] [[clearing house (finance)|clearing banks]].<ref>[http://query.nytimes.com/gst/fullpage.html?res=990CE2DA163EF931A25753C1A963958260 Lloyds Bank to merge with TSB Group] New York Times, 12 October 1995</ref> Originally founded in 1765, the bank expanded during the nineteenth and twentieth centuries and took over a number of smaller banking companies. In 1995 it merged with the [[Trustee Savings Bank]] and was renamed '''Lloyds TSB Bank plc''' in 1998.
'''Lloyds Bank plc''' is a [[retail banking|retail bank]] in the United Kingdom. Originally founded in 1765, it was re-established in 2013 following the separation of '''Lloyds TSB''' which had been formed in 1995. It has traditionally been considered one of the [[Big Four (banks)|Big Four]] [[clearing house (finance)|clearing banks]].<ref>[http://query.nytimes.com/gst/fullpage.html?res=990CE2DA163EF931A25753C1A963958260 Lloyds Bank to merge with TSB Group] New York Times, 12 October 1995</ref>

⚫
The bank is a subsidiary of [[Lloyds Banking Group]], which was formed in January 2009 by the acquisition of [[HBOS]] by the then-Lloyds TSB Group.<ref>[http://www.mediacentre.lloydstsb.com/media/pdf_irmc/mc/press_releases/2009/January/1409pressrelease.pdf?WT.ac=MHPLNCON Change of Company Name] press release by Lloyds TSB Group plc, 16 January 2009.</ref> That year, following the [[2008 United Kingdom bank rescue package|UK bank rescue package]], [[Government of the United Kingdom|HM Government]] took a 43.4% stake in Lloyds Banking Group. As a condition imposed by the [[European Union]] regarding state aid,<ref>[http://webcasts.lloydsbankinggroup.com/capitalraising/files/FINAL_-_Analyst_Presentation.pdf Rights Issue and Capital Enhancement Proposals] Presentations and Webcasts, Lloyds Banking Group, 3 November 2009</ref> the group later announced that it would create a new standalone retail banking business, made up of a number of Lloyds TSB branches and those of [[Cheltenham & Gloucester]]. The new business began operations on 9 September 2013 under the [[TSB Bank (United Kingdom)|TSB]] brand. Lloyds TSB was subsequently renamed Lloyds Bank on 23 September 2013.<ref name=Parsons>{{cite web|last=Parsons |first=Russell |url=http://www.marketingweek.co.uk/news/lloyds-bank-to-return-to-high-street-on-23-september/4007815.article |title=Lloyds Bank to return to high street on 23 September |publisher=Marketing Week |date=4 September 2013 |accessdate=10 September 2013}}</ref>


Lloyds Bank has an extensive network of branches and [[Automated teller machine|ATM]] in [[England]] and [[Wales]] and offers 24-hour telephone and online banking services. {{As of|2012}} it has 16&nbsp;million personal customers and small business accounts.<ref>[http://www.theworkfoundation.com/Assets/Docs/Publications/LloydsTSB.pdf Lloyds TSB: Case Study]. The Work Foundation. January 2005.</ref>
Lloyds Bank has an extensive network of branches and [[Automated teller machine|ATM]] in [[England]] and [[Wales]] and offers 24-hour telephone and online banking services. {{As of|2012}} it has 16&nbsp;million personal customers and small business accounts.<ref>[http://www.theworkfoundation.com/Assets/Docs/Publications/LloydsTSB.pdf Lloyds TSB: Case Study]. The Work Foundation. January 2005.</ref>

⚫
The bank is a subsidiary of [[Lloyds Banking Group]], which was formed in January 2009 by the acquisition of [[HBOS]] by the then-Lloyds TSB Group.<ref>[http://www.mediacentre.lloydstsb.com/media/pdf_irmc/mc/press_releases/2009/January/1409pressrelease.pdf?WT.ac=MHPLNCON Change of Company Name] press release by Lloyds TSB Group plc, 16 January 2009.</ref> That year, following the [[2008 United Kingdom bank rescue package|UK bank rescue package]], [[Government of the United Kingdom|HM Government]] took a 43.4% stake in Lloyds Banking Group. As a condition imposed by the [[European Union]] regarding state aid,<ref>[http://webcasts.lloydsbankinggroup.com/capitalraising/files/FINAL_-_Analyst_Presentation.pdf Rights Issue and Capital Enhancement Proposals] Presentations and Webcasts, Lloyds Banking Group, 3 November 2009</ref> the group later announced that it would create a new standalone retail banking business, made up of a number of Lloyds TSB branches and those of [[Cheltenham & Gloucester]]. The new business began operations on 9 September 2013 under the [[TSB Bank (United Kingdom)|TSB]] brand. Lloyds TSB was subsequently rebranded Lloyds Bank on 23 September 2013.<ref name=Parsons>{{cite web|last=Parsons |first=Russell |url=http://www.marketingweek.co.uk/news/lloyds-bank-to-return-to-high-street-on-23-september/4007815.article |title=Lloyds Bank to return to high street on 23 September |publisher=Marketing Week |date=4 September 2013 |accessdate=10 September 2013}}</ref>


==History==
==History==
{{details3|[[Lloyds Bank (historic)]] and [[Trustee Savings Bank]]}}
=== Origins ===
[[File:Lloyds bank in Halifax.jpg|thumb|The [[Halifax, West Yorkshire]] branch of Lloyds on George Square, built 1897.<ref>COMMERCIAL STREET 1. 1164 (West Side) SE 02 NE SP/147 Lloyds Bank II 2, see [http://www.imagesofengland.org.uk/details/default.aspx?id=447622 Images of England No. 447622] National Monuments Record, English Heritage (retrieved 23 November 2009).</ref>]]
[[File:Lloyds bank in Halifax.jpg|thumb|The [[Halifax, West Yorkshire]] branch of Lloyds on George Square, built 1897.<ref>COMMERCIAL STREET 1. 1164 (West Side) SE 02 NE SP/147 Lloyds Bank II 2, see [http://www.imagesofengland.org.uk/details/default.aspx?id=447622 Images of England No. 447622] National Monuments Record, English Heritage (retrieved 23 November 2009).</ref>]]


⚫
[[File:Lloyds tsb logo.svg|thumb|right|The Lloyds TSB logo used from 1998-2013]]
The origins of Lloyds Bank date from 1765, when button maker [[John Taylor (manufacturer)|John Taylor]] and iron producer and dealer [[Sampson Lloyd]] II set up a private banking business in Dale End, [[Birmingham]]. The first branch office opened in [[Oldbury, West Midlands|Oldbury]], some six miles (10&nbsp;km) west of Birmingham, in 1864. The symbol adopted by Taylors and Lloyds was the beehive, representing industry and hard work. The black horse device dates from 1677 when Humphrey Stokes adopted it as sign for his shop. Stokes was a goldsmith and "keeper of the running cashes," an early term for banker and the business became part of Barnett, Hoare & Co. When the bank took over that bank in 1884, it retained the black horse as its symbol.<ref>[http://www.lloydstsb.com/about_ltsb/lloyds_bank.asp Lloyds Bank] About Lloyds TSB (retrieved 11 October 2008)</ref>
The bank was founded in 1765 as Taylors and Lloyds in Birmingham. This private bank converted into a joint-stock company in 1865, becoming Lloyds Bank Limited in 1889. The Trustee Savings Bank (TSB) was founded by the Rev. [[Henry Duncan (1774–1846)|Henry Duncan]] of [[Ruthwell]], Dumfriesshire, in 1810, and in 1985 the TSB Group was incorporated under the [[Companies Act 1985|Companies Act]].<ref>[http://www.opsi.gov.uk/acts/acts1985/pdf/ukpga_19850058_en.pdf Trustee Savings Banks Act 1985] (cap. {{clarify|date=August 2013}} 58)</ref> The modern bank was created under the aegis of its CEO from 1984 to 1997, Sir Brian Pitman, who narrowed the bank's business focus and reacted to disastrous lending to South American states by trimming its overseas businesses and seeking growth through mergers with other UK banks. Pitman unsuccessfully tried to acquire [[The Royal Bank of Scotland]] in 1984, [[Standard Chartered|Standard Chartered Bank]] in 1985, [[Midland Bank]] in 1992 and [[Abbey National]] in 2001, and in 1995 merged Lloyds with TSB Group and the Cheltenham & Gloucester Building Society.<ref>{{cite web|author=Philippe Naughton Last updated at 1:46PM, 29 March 2012 |url=http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article7058909.ece |title=Banking giant Sir Brian Pitman dies at 78 |publisher=business.timesonline.co.uk |date=12 November 2011 |accessdate=2012-03-29}}</ref><ref>{{cite web|url=http://www.telegraph.co.uk/news/obituaries/7430780/Sir-Brian-Pitman.html |title=obituary: Sir Brian Pitman |publisher=Daily Telegraph |date= |accessdate=2012-03-29}}</ref><ref>{{cite web|author=Roger Cowe |url=http://www.guardian.co.uk/business/2010/mar/11/sir-brian-pitman-obituary |title=Obituary: Sir Brian Pitman |publisher=Guardian |date= |accessdate=2012-03-29}}</ref> Lloyds TSB commenced trading in 1998, after the statutory process of integration had been completed.<ref>[https://www.legislation.hmso.gov.uk/acts/localact1998/ukla_19980005_en_1 Lloyds TSB Act 1998] (cap. 5)</ref>


Lloyds' three Scottish branches were absorbed into TSB Scotland, which remained separate from TSB Bank in England and Wales following consolidation. [[First Trust Bank|TSB Northern Ireland]] was sold to [[Allied Irish Banks]] before the merger in 1991; the bank does not have a presence in Northern Ireland. TSB Channel Islands was integrated into TSB Bank in 1992. Lloyds Bank International merged into Lloyds Bank in 1986, since there was no longer an advantage in operating separately.<ref>Lloyds Bank (Merger) Act 1985 (cap. 9)</ref> The [[Scottish Widows]] Fund and Life Assurance Society was demutualised and subsequently acquired by the Group in 2000.
This private bank converted into a joint-stock company known as Lloyds Banking Company Ltd. in 1865. Two sons of the original partners followed in their footsteps by joining the establishined merchant bank Barnett, Hoare & Co which eventually became Barnetts, Hoares, Hanbury and Lloyd&mdash; based in Lombard Street, London and using the Black Horse logo/trade mark. Eventually, this became absorbed into the original Lloyds Banking Company, which became Lloyds, Barnetts and Bosenquets Bank Ltd. in 1884 and finally Lloyds Bank Limited in 1889. There is no connection in origin between Lloyds Bank (no apostrophe) and [[Lloyd's of London]], [[Lloyd's Register]] or [[Lloyd's List]] (which were spawned by [[Lloyd's Coffee House]]).

=== Expansion ===
[[File:National Bank of New Zealand logo.svg|thumb|180px|The former Lloyds Bank logo]]
Through a series of mergers, including [[Cunliffe, Brooks]] in 1900, the Wilts. and Dorset Bank in 1914 and the Capital and Counties Bank in 1918, Lloyds emerged to become one of the [[Big Four (banks)|big four]] clearing banks in the [[United Kingdom]]. By 1923, Lloyds Bank had made some 50 takeovers, one of which was the last private firm to issue its own banknotes&mdash;[[Fox, Fowler and Company]] of Wellington, Somerset. Today, the [[Bank of England]] has a monopoly of banknote issue in England and Wales.<ref>[http://www.bankofengland.co.uk/banknotes/about/history.htm A brief history of banknotes] Bank of England (retrieved 11 October 2008)</ref>

In 1968, a failed attempt at merger with [[Barclays]] and [[Martins Bank]] was deemed to be against the public interest by the [[Competition Commission (United Kingdom)|Monopolies and Mergers Commission]]. Barclays finally acquired Martins the following year.<ref>Roskill QC, Sir Ashton (chairman) ''Barclays Bank, Lloyds Bank and Martins Bank: a report on the proposed merger'' ([http://www.competition-commission.org.uk/rep_pub/reports/1960_1969/fulltext/046c01.pdf Chapter 1], [http://www.competition-commission.org.uk/rep_pub/reports/1960_1969/fulltext/046c02.pdf Chapter 2] and [http://www.competition-commission.org.uk/rep_pub/reports/1960_1969/fulltext/046appendices.pdf Appendices]) Presented to Parliament in pursuance of section 9 of the Monopolies and Restrictive Practices (Inquiry and Control) Act 1948 (as applied by section 6(5) of the Monopolies and Mergers Act 1965) London: HMSO, 15 July 1968</ref> In 1972, Lloyds Bank was a founder member of the Joint Credit Card Company (with [[National Westminster Bank]], [[Midland Bank]] and [[The Royal Bank of Scotland]]) which launched the [[Access (credit card)|Access]] [[credit card]] (now [[MasterCard]]) and in the same year it introduced ''Cashpoint'', the first online cash machine to use plastic cards with a magnetic stripe.<ref>[http://www.apacs.org.uk/payment_options/documents/Plastic%20Cards%20_%20History%20of%20Plastic%20Cards%20in%20the%20UK%20v1.pdf History of Plastic Cards] The Association for Payment Clearing Services, 9 January 2006</ref> In popular use, the ''Cashpoint'' [[trademark]] has become a generic term for an [[Automated teller machine|ATM]] in the [[United Kingdom]].

Under the leadership of Sir Brian Pitman between 1984 and 1997, the bank's business focus was narrowed and it reacted to disastrous lending to South American states by trimming its overseas businesses and seeking growth through mergers with other UK banks. During this period, Pitman unsuccessfully tried to acquire [[The Royal Bank of Scotland]] in 1984, [[Standard Chartered]] in 1986,<ref>[http://query.nytimes.com/gst/fullpage.html?res=9A0DE1DF113DF93BA15755C0A960948260 Offer Sweetened By Lloyds Bank] The New York Times, 28 June 1986</ref> and [[Midland Bank]] in 1992. Lloyds Bank International merged into Lloyds Bank in 1986, since there was no longer an advantage in operating separately.<ref>Lloyds Bank (Merger) Act 1985 (cap. 9)</ref> In 1988, Lloyds merged five of its businesses with the [[Abbey Life|Abbey Life Insurance Company]] to create Lloyds Abbey Life.

===Lloyds TSB===
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[[File:Lloyds tsb logo.svg|thumb|The Lloyds TSB logo used from 1998-2013]]
The bank merged with [[Trustee Savings Bank|TSB Group]] and the newly demutualised [[Cheltenham & Gloucester|Cheltenham & Gloucester Building Society]] (C&G) in 1995.<ref>{{cite web|author=Philippe Naughton |url=http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article7058909.ece |title=Banking giant Sir Brian Pitman dies at 78 |publisher=business.timesonline.co.uk |date=12 November 2011 |accessdate=2012-03-29}}</ref><ref>{{cite web|url=http://www.telegraph.co.uk/news/obituaries/7430780/Sir-Brian-Pitman.html |title=Obituary: Sir Brian Pitman |publisher=Daily Telegraph |date= |accessdate=2012-03-29}}</ref><ref>{{cite web|author=Roger Cowe |url=http://www.guardian.co.uk/business/2010/mar/11/sir-brian-pitman-obituary |title=Obituary: Sir Brian Pitman |publisher=Guardian |date= |accessdate=2012-03-29}}</ref> The merger with C&G gave Lloyds a large stake in the UK [[Mortgage loan|mortgage]] lending market.<ref>[http://www.cheltglos.co.uk/about-candg.html About C&G] Cheltenham and Gloucester (retrieved 11 October 2008)</ref> Lloyds Abbey Life became a wholly owned subsidiary of Lloyds in 1996, absorbing [[Hill Samuel]] in 1997 before closing to new business in 2000. The bank commenced trading as Lloyds TSB Bank plc in 1998, after the statutory process of integration had been completed.<ref>[https://www.legislation.hmso.gov.uk/acts/localact1998/ukla_19980005_en_1 Lloyds TSB Act 1998] (cap. 5)</ref> At that point the combined business was the largest bank in the UK by market share and the second-largest to Midland Bank (now HSBC) by market capitalisation. Lloyds' three Scottish branches were merged with TSB Scotland to form Lloyds TSB Scotland, a separate subsidiary to Lloyds TSB Bank in England and Wales.

The [[Scottish Widows]] Fund and Life Assurance Society was demutualised and subsequently acquired by the Group in 2000. Lloyds made an unsuccessful bid to acquire [[Abbey National]] in 2001.


In October 2011, Lloyds TSB's credit rating was reduced by Moody's from Aa3 to A1.<ref>{{cite web|url=http://www.moodys.com/research/Moodys-downgrades-12-UK-financial-institutions-concluding-review-of-systemic--PR_227067 |title=Moody's downgrades 12 UK financial institutions |publisher=Moodys.com |date= |accessdate=2012-03-29}}</ref> The action was taken in the light of a shift in government policy to move risk from taxpayers to creditors by reducing the level of support offered to financial institutions.
In October 2011, Lloyds TSB's credit rating was reduced by Moody's from Aa3 to A1.<ref>{{cite web|url=http://www.moodys.com/research/Moodys-downgrades-12-UK-financial-institutions-concluding-review-of-systemic--PR_227067 |title=Moody's downgrades 12 UK financial institutions |publisher=Moodys.com |date= |accessdate=2012-03-29}}</ref> The action was taken in the light of a shift in government policy to move risk from taxpayers to creditors by reducing the level of support offered to financial institutions.


===Divestment and return to Lloyds Bank===
===Divestment===
[[File:Lloyds Bank Newcastle Haymarket.jpg|thumb|A rebranded Lloyds Bank branch in [[Newcastle upon Tyne]]]]
[[File:Lloyds Bank Newcastle Haymarket.jpg|thumb|One of the re-branded Lloyds Banks in [[Newcastle upon Tyne]].]]
In 2009 it was announced that a number of Lloyds TSB branches in England and Wales would be combined with the businesses of Lloyds TSB Scotland and Cheltenham & Gloucester to form a new bank operating under the [[TSB Bank (United Kingdom)|TSB]] brand and sold by Lloyds Banking Group.<ref>[http://www.lloydsbankinggroup.com/media1/faqs/FAQs.asp Proposed Alternative to GAPS/Capital Raising] RNS Announcements, Lloyds Banking Group, 3 November 2009</ref>
After the 2008 rescue of HBOS,<ref>[http://www.oft.gov.uk/shared_oft/press_release_attachments/LLloydstsb.pdf Anticipated acquisition by Lloyds TSB Group Plc of HBOS Plc] Office of Fair Trading, 24 October 2008</ref> Lloyds TSB Group was renamed Lloyds Banking Group.<ref>[http://www.mediacentre.lloydstsb.com/media/pdf_irmc/mc/press_releases/2009/January/1409pressrelease.pdf?WT.ac=MHPLNCON Change of Company Name] RNS Announcements, Lloyds TSB Group, 16 January 2009</ref> In 2009, following the [[2008 United Kingdom bank rescue package|liquidity crisis]], [[HM Government]] took a 43.4% stake in Lloyds Banking Group. The [[European Commission]] ruled that the group sell a portion of its business, as it categorised the stake purchase as state aid.<ref>[http://webcasts.lloydsbankinggroup.com/capitalraising/files/FINAL_-_Analyst_Presentation.pdf Rights Issue and Capital Enhancement Proposals] Presentations and Webcasts, Lloyds Banking Group, 3 November 2009</ref>


On 24 April 2013, it was confirmed that a number of Lloyds TSB branches in England and Wales would be combined with the branches of Cheltenham & Gloucester and the business of Lloyds TSB Scotland to form a new bank operating under the [[TSB Bank (United Kingdom)|TSB]] brand and divested by the group.<ref>[http://www.lloydsbankinggroup.com/media1/faqs/FAQs.asp Proposed Alternative to GAPS/Capital Raising] RNS Announcements, Lloyds Banking Group, 3 November 2009</ref><ref>{{cite web|url=http://www.lloydsbankinggroup.com/media/pdfs/investors/2013/2013Apr24_LBG_Verde_Update.pdf |title=Lloyds Banking Group update on EC mandated business disposal (Project Verde) |publisher=Lloyds Banking Group |date=2013-04-24 |accessdate=2013-09-10}}</ref> The selected Lloyds TSB branches and those of Cheltenham & Gloucester were transferred to Lloyds TSB Scotland plc, which was renamed TSB Bank plc and is due to be divested through an [[initial public offering]] in 2014.<ref>{{cite web|url=http://www.lloydstsbtransfer.com/update-on-24th-april-2013/ |title=Update on 24th April 2013 |publisher=Lloyds TSB |date=24 April 2013 |accessdate=24 April 2013}}</ref> The new bank began operating on 9 September 2013 as a separate division within Lloyds Banking Group.<ref>{{cite news|url=http://www.bbc.co.uk/news/business-24013970 |title=Lloyds faces internet issues on TSB launch day |publisher=BBC News |date=9 September 2013 |accessdate=14 September 2013}}</ref> The remaining business of Lloyds TSB was renamed Lloyds Bank on 23 September 2013 and returned to the business name of Lloyds Bank plc.<ref name=Parsons/>
On 24 April 2013, it was announced that detailed plans were in place for a rebranding of 632 branches as TSB, and this would be visible as new signage from mid-2013.<ref>{{cite web|url=http://www.lloydsbankinggroup.com/media/pdfs/investors/2013/2013Apr24_LBG_Verde_Update.pdf |title=Lloyds Banking Group update on EC mandated business disposal (Project Verde) |publisher=Lloyds Banking Group |date=2013-04-24 |accessdate=2013-09-10}}</ref> The selected Lloyds TSB branches and those of Cheltenham & Gloucester were transferred to Lloyds TSB Scotland plc, which was renamed TSB Bank plc and is due to be divested through an [[initial public offering]] in 2014.<ref>{{cite web|url=http://www.lloydstsbtransfer.com/update-on-24th-april-2013/ |title=Update on 24th April 2013 |publisher=Lloyds TSB |date=24 April 2013 |accessdate=24 April 2013}}</ref> The new bank began operating on 9 September 2013 as a separate division within Lloyds Banking Group.<ref>{{cite news|url=http://www.bbc.co.uk/news/business-24013970 |title=Lloyds faces internet issues on TSB launch day |publisher=BBC News |date=9 September 2013 |accessdate=14 September 2013}}</ref> The remaining business of Lloyds TSB was renamed Lloyds Bank on 23 September 2013.<ref name=Parsons/>


==Services==
==Services==
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[[File:Lloyds TSB, Headrow, Leeds (20th February 2013).JPG|thumb|right|upright|Lloyds TSB on the [[Headrow]] in [[Leeds]]]]
[[File:Lloyds TSB, Headrow, Leeds (20th February 2013).JPG|thumb|right|upright|Lloyds TSB on the [[Headrow]] in [[Leeds]]]]


⚫
==Controversies==
== Former overseas operations ==
By the early 1990s, Lloyds Bank had offices in 30 countries, from [[Argentina]] to the [[United States of America]].


=== Europe ===
1911 saw the formation of Lloyds Bank ([[France]]) when Lloyds Bank acquired Armstrong and Co., based in [[Paris]] and [[Le Havre]]. From 1917 it was run jointly as Lloyds and [[National Provincial Bank]]. In 1955, Lloyds Bank bought full ownership and it became Lloyds Bank (Foreign) and later Lloyds Bank Europe.<ref>[http://www.rbs.com/about03.asp?id=ABOUT_US/OUR_HERITAGE/OUR_ARCHIVES/ONLINE_ARCHIVE_GUIDE/THE_ARCHIVE_GUIDE/LLOYDS_BANK_INTERNATIONAL Lloyds Bank Europe] The Royal Bank of Scotland Group (retrieved 11 October 2008)</ref>

In April 2013 Lloyds sold its loss-making retail and private banking business [[Lloyds Bank International (Spain)|Lloyds Bank International]] (originally the Spanish subsidiary of [[Halifax (United Kingdom bank)|Halifax]]) and the local investment management business in Spain to [[Banco Sabadell]]. Lloyds will receive a 1.8% stake in Sabadell, worth about €84 million, plus an additional sum of up to €20 million euros over the next five years.

===Bank of London and South America===
[[File:Buenos Aires - Manifestación contra el Corralito - 20020206-15.JPG|thumb|Demonstration against the [[Corralito]], Buenos Aires, 2002.]]
A strong connection with South America began in 1918 with the acquisition of the London and River Plate Bank. The later merger with the London and Brazilian Bank resulted in the [[Bank of London and South America]]. The [[Bank of London and Montreal]] was a joint venture between the Bank of London and South America and the [[Bank of Montreal]]. In 1971, Lloyds Bank bought the controlling interest in BOLSA and merged it with Lloyds Bank Europe to form Lloyds and Bolsa International Bank. This became Lloyds Bank International in 1974 and was merged into Lloyds Bank in 1986.<ref>Lloyds Bank (Merger) Act 1985 (cap. 9)</ref>

===National Bank of New Zealand===
In 1872, the [[National Bank of New Zealand]] was founded in London as an overseas bank and shared many directors with Lloyds Bank. In 1919, Lloyds Bank acquired a small interest in the National Bank and in 1966, purchased it outright. In 1978, the National Bank moved its head office from London to [[Wellington]].<ref>[http://www.anznational.co.nz/brands/thenationalbank.aspx National Bank of New Zealand] About ANZ National (retrieved 11 October 2008)</ref>

An already commanding presence as the National Bank of New Zealand was further strengthened in 1994 by the takeover of the Rural Bank, the former New Zealand government owned bank, from [[Fletcher Challenge]], making it the leading provider of agricultural finance in the country.

In 2003, Lloyds TSB sold the National Bank to the [[Australia and New Zealand Banking Group|ANZ Banking Group]]. ANZ announced that the National Bank brand (including the former Lloyds bank colours and horse) will be phased out by 2014.

=== Asia ===
In 1961, Lloyds Bank transferred its Eastern Division to [[Grindlays Bank|National and Grindlays Bank]] in exchange for a 25 per cent share in National and Grindlays Bank (renamed Grindlays Bank in 1975). The bank retained its interest in Grindlays until 1984, when it was sold to the [[Australia and New Zealand Banking Group]].

=== North America ===
The [[Bank of London and Montreal]] was a joint venture between the Bank of London and South America and Canadian [[Bank of Montreal]] established in 1958 and headquartered in Nassau, Bahamas. In 1970, BOLSA fully acquired BOLAM.

[[Lloyds Bank of Canada]] was formed in 1986, when the bank purchased the [[Continental Bank of Canada]]. In 1990, after several years of losses, Lloyds Bank sold its Canadian operations to the [[HSBC Bank Canada|Hong Kong Bank of Canada]], a subsidiary of [[HSBC]] Holdings plc.

⚫
==Controversies==
=== Payment Protection Insurance ===
=== Payment Protection Insurance ===
In November 2005 an [[Financial Services Authority|FSA]] investigation highlighted a lack of compliance controls surrounding [[Payment Protection Insurance]] (PPI). A second investigation in October 2006 identified further evidence of poor compliance and major PPI providers including Lloyds were fined for not treating customers fairly. In January 2011 a High Court case began which in the following April ruled against the banks, on 5 May 2011 Lloyds withdrew from the legal challenge. In 2012, Lloyds announced that they have set aside £3.6bn<ref>{{cite web|url=http://www.dpaclaims.co.uk/lloyds-tsb-counting-the-cost-of-the-ppi-scandal/ |title=Lloyds TSB counting the cost of the PPI scandal |publisher=DPA Claims |date=2012-05-16 |accessdate=2013-09-16}}</ref> to cover the cost of compensating customers who were mis-sold PPI.
In November 2005 an [[Financial Services Authority|FSA]] investigation highlighted a lack of compliance controls surrounding [[Payment Protection Insurance]] (PPI). A second investigation in October 2006 identified further evidence of poor compliance and major PPI providers including Lloyds were fined for not treating customers fairly. In January 2011 a High Court case began which in the following April ruled against the banks, on 5 May 2011 Lloyds withdrew from the legal challenge. In 2012, Lloyds announced that they have set aside £3.6bn<ref>{{cite web|url=http://www.dpaclaims.co.uk/lloyds-tsb-counting-the-cost-of-the-ppi-scandal/ |title=Lloyds TSB counting the cost of the PPI scandal |publisher=DPA Claims |date=2012-05-16 |accessdate=2013-09-16}}</ref> to cover the cost of compensating customers who were mis-sold PPI.
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== References ==
== References ==
{{Reflist|colwidth=30em}}
{{Reflist|colwidth=30em}}
===Bibliography===
{{refbegin}}
*Sayers, R. S. ''Lloyds Bank in the History of English Banking'' Oxford: Clarendon Press, 1957
*Winton, J. R. ''Lloyds Bank 1918&ndash;1969'' Oxford University Press, 1982
*Jones, Geoffrey ''Lombard Street on the Riviera: British Clearing Banks and Europe 1900&ndash;1960'' Business History, Vol. 24 No. 2 (pp.&nbsp;186–210) July 1982
{{refend}}

== See also ==
*[[Lloyds Bank Ltd v Bundy]]
*[[Lloyds Bank plc v Rosset]]


== External links ==
== External links ==

Revision as of 16:28, 22 September 2013

This article is about the present Lloyds Bank, formerly known as Lloyds TSB. For the Lloyds Bank prior to merging with TSB, see Lloyds Bank (historic). For other uses, see Lloyds Bank (disambiguation).
Not to be confused with Lloyd's of London or Lloyd's Register.

Lloyds Bank plc
Company typePublic limited company
IndustryFinancial services
Founded1765 (origins)
1998 (as Lloyds TSB)
2013 (as Lloyds Bank)
Headquarters
25 Gresham Street
London EC2V 7HN
,
United Kingdom
Key people
Sir Winfried Bischoff (chairman)
Antonio Horta-Osorio (chief executive)
ProductsBanking and insurance
Number of employees
45,856
ParentLloyds Banking Group
DivisionsLloyds Bank International
Websitewww.lloydsbank.com

Lloyds Bank plc is a retail bank in the United Kingdom. Originally founded in 1765, it was re-established in 2013 following the separation of Lloyds TSB which had been formed in 1995. It has traditionally been considered one of the Big Four clearing banks.[1]

Lloyds Bank has an extensive network of branches and ATM in England and Wales and offers 24-hour telephone and online banking services. As of 2012 it has 16 million personal customers and small business accounts.[2]

The bank is a subsidiary of Lloyds Banking Group, which was formed in January 2009 by the acquisition of HBOS by the then-Lloyds TSB Group.[3] That year, following the UK bank rescue package, HM Government took a 43.4% stake in Lloyds Banking Group. As a condition imposed by the European Union regarding state aid,[4] the group later announced that it would create a new standalone retail banking business, made up of a number of Lloyds TSB branches and those of Cheltenham & Gloucester. The new business began operations on 9 September 2013 under the TSB brand. Lloyds TSB was subsequently rebranded Lloyds Bank on 23 September 2013.[5]

History

Template:Details3

The Halifax, West Yorkshire branch of Lloyds on George Square, built 1897.[6]
The Lloyds TSB logo used from 1998-2013

The bank was founded in 1765 as Taylors and Lloyds in Birmingham. This private bank converted into a joint-stock company in 1865, becoming Lloyds Bank Limited in 1889. The Trustee Savings Bank (TSB) was founded by the Rev. Henry Duncan of Ruthwell, Dumfriesshire, in 1810, and in 1985 the TSB Group was incorporated under the Companies Act.[7] The modern bank was created under the aegis of its CEO from 1984 to 1997, Sir Brian Pitman, who narrowed the bank's business focus and reacted to disastrous lending to South American states by trimming its overseas businesses and seeking growth through mergers with other UK banks. Pitman unsuccessfully tried to acquire The Royal Bank of Scotland in 1984, Standard Chartered Bank in 1985, Midland Bank in 1992 and Abbey National in 2001, and in 1995 merged Lloyds with TSB Group and the Cheltenham & Gloucester Building Society.[8][9][10] Lloyds TSB commenced trading in 1998, after the statutory process of integration had been completed.[11]

Lloyds' three Scottish branches were absorbed into TSB Scotland, which remained separate from TSB Bank in England and Wales following consolidation. TSB Northern Ireland was sold to Allied Irish Banks before the merger in 1991; the bank does not have a presence in Northern Ireland. TSB Channel Islands was integrated into TSB Bank in 1992. Lloyds Bank International merged into Lloyds Bank in 1986, since there was no longer an advantage in operating separately.[12] The Scottish Widows Fund and Life Assurance Society was demutualised and subsequently acquired by the Group in 2000.

In October 2011, Lloyds TSB's credit rating was reduced by Moody's from Aa3 to A1.[13] The action was taken in the light of a shift in government policy to move risk from taxpayers to creditors by reducing the level of support offered to financial institutions.

Divestment

One of the re-branded Lloyds Banks in Newcastle upon Tyne.

In 2009 it was announced that a number of Lloyds TSB branches in England and Wales would be combined with the businesses of Lloyds TSB Scotland and Cheltenham & Gloucester to form a new bank operating under the TSB brand and sold by Lloyds Banking Group.[14]

On 24 April 2013, it was announced that detailed plans were in place for a rebranding of 632 branches as TSB, and this would be visible as new signage from mid-2013.[15] The selected Lloyds TSB branches and those of Cheltenham & Gloucester were transferred to Lloyds TSB Scotland plc, which was renamed TSB Bank plc and is due to be divested through an initial public offering in 2014.[16] The new bank began operating on 9 September 2013 as a separate division within Lloyds Banking Group.[17] The remaining business of Lloyds TSB was renamed Lloyds Bank on 23 September 2013.[5]

Services

The Teddington branch of Lloyds Bank in London, designed by Randall Wells in 1929.[18]

The bank offers a full range of banking and financial services. Lloyds Bank International Limited, a wholly owned subsidiary, operates branches in Jersey, Guernsey and the Isle of Man, while Lloyds Bank (Gibraltar) Limited operates in Gibraltar; both trade as Lloyds Bank International. Lloyds Bank is authorised by the Prudential Regulation Authority and regulated by both the Financial Conduct Authority and the Prudential Regulation Authority.[19] It is a member of the Financial Ombudsman Service, the Financial Services Compensation Scheme, UK Payments Administration and of the British Bankers' Association. The bank uses the following series of sorting codes:—

Range Note
30 to 39 former Lloyds branches
77-00 to 77-44
77-46 to 77-99		 former TSB branches

The Lloyds TSB Foundation funds local, regional and national charities working to tackle disadvantage across England and Wales.[20] There are separate foundations covering Scotland, Northern Ireland and the Channel Islands.

Lloyds TSB on the Headrow in Leeds

Controversies

Payment Protection Insurance

In November 2005 an FSA investigation highlighted a lack of compliance controls surrounding Payment Protection Insurance (PPI). A second investigation in October 2006 identified further evidence of poor compliance and major PPI providers including Lloyds were fined for not treating customers fairly. In January 2011 a High Court case began which in the following April ruled against the banks, on 5 May 2011 Lloyds withdrew from the legal challenge. In 2012, Lloyds announced that they have set aside £3.6bn[21] to cover the cost of compensating customers who were mis-sold PPI.

Mistreatment of customers

The methods used by a high-profile Lloyds TSB service The Collections Dept., based in Southend-on-Sea, Essex, has been strongly criticised by consumer groups,[22] as have manoeuvres allegedly designed to take advantage of legal loopholes to avoid repaying charges levied against its clients.[23] Lloyds has also been accused of religious discrimination in connection with its overdraft charges.[24]

Dissatisfaction with service, and inefficient and unfair banking transactions, have been recurring themes in surveys conducted about Lloyds, and other UK High Street banks.[25] In 2003, Lloyds TSB was fined £100 million for its part in mis-selling high risk investment bonds.[26]

In December 2008 the British anti-poverty charity War on Want released a report documenting the extent to which the UK high street banks invest in, provide banking services for and lend to arms companies. The report stated that Lloyds TSB is the only high street bank whose corporate social responsibility policy does not mention the arms industry, yet is that industry's second largest shareholder among high street banks.[27]

Tax evasion

In 2009, the BBC's Panorama alleged that Lloyds TSB Jersey was encouraging wealthy customers to evade tax. An employee of Lloyds was filmed telling a customer how several mechanisms could be used to make their transactions invisible to the UK tax authorities.[28] This action is also in breach of money laundering regulations in Jersey.[29] Lloyds subsequently claimed that this was an isolated incident which they were investigating.[30]

References

  1. ^ Lloyds Bank to merge with TSB Group New York Times, 12 October 1995
  2. ^ Lloyds TSB: Case Study. The Work Foundation. January 2005.
  3. ^ Change of Company Name press release by Lloyds TSB Group plc, 16 January 2009.
  4. ^ Rights Issue and Capital Enhancement Proposals Presentations and Webcasts, Lloyds Banking Group, 3 November 2009
  5. ^ a b Parsons, Russell (4 September 2013). "Lloyds Bank to return to high street on 23 September". Marketing Week. Retrieved 10 September 2013.
  6. ^ COMMERCIAL STREET 1. 1164 (West Side) SE 02 NE SP/147 Lloyds Bank II 2, see Images of England No. 447622 National Monuments Record, English Heritage (retrieved 23 November 2009).
  7. ^ Trustee Savings Banks Act 1985 (cap. [clarification needed] 58)
  8. ^ Philippe Naughton Last updated at 1:46PM, 29 March 2012 (12 November 2011). "Banking giant Sir Brian Pitman dies at 78". business.timesonline.co.uk. Retrieved 29 March 2012.{{cite web}}: CS1 maint: numeric names: authors list (link)
  9. ^ "obituary: Sir Brian Pitman". Daily Telegraph. Retrieved 29 March 2012.
  10. ^ Roger Cowe. "Obituary: Sir Brian Pitman". Guardian. Retrieved 29 March 2012.
  11. ^ Lloyds TSB Act 1998 (cap. 5)
  12. ^ Lloyds Bank (Merger) Act 1985 (cap. 9)
  13. ^ "Moody's downgrades 12 UK financial institutions". Moodys.com. Retrieved 29 March 2012.
  14. ^ Proposed Alternative to GAPS/Capital Raising RNS Announcements, Lloyds Banking Group, 3 November 2009
  15. ^ "Lloyds Banking Group update on EC mandated business disposal (Project Verde)" (PDF). Lloyds Banking Group. 24 April 2013. Retrieved 10 September 2013.
  16. ^ "Update on 24th April 2013". Lloyds TSB. 24 April 2013. Retrieved 24 April 2013.
  17. ^ "Lloyds faces internet issues on TSB launch day". BBC News. 9 September 2013. Retrieved 14 September 2013.
  18. ^ 1. 5028 HIGH STREET (north side) Teddington No 23. Lloyds Bank TQ 1671 23/26 II 2, see Images of England No. 205455 National Monuments Record, English Heritage (Retrieved 23 November 2009)
  19. ^ "Important information". Cheltenham & Gloucester. May 2013. Retrieved 30 May 2013.
  20. ^ About Us Lloyds TSB Foundation for England and Wales (retrieved 3 October 2009)
  21. ^ "Lloyds TSB counting the cost of the PPI scandal". DPA Claims. 16 May 2012. Retrieved 16 September 2013.
  22. ^ Rae, Charles (10 July 2007). "Worst bullying case in 30 years". London: Sun Newspaper online. Retrieved 30 August 2009.
  23. ^ Consumer forum http://www.consumerforums.com
  24. ^ Martin, Arthur (22 August 2009). "An overdraft? That'll be £200 at Lloyds TSB (but only £15 if you're a Muslim)". London: Mail Online. Retrieved 30 August 2009.
  25. ^ Smith, Claire (30 November 2010). "More customers keen to switch as high street banks slated on service". Edinburgh: The Scotsman online. Retrieved 30 November 2010.
  26. ^ Stevenson, Rachel (26 September 2003). "Lloyds gets record £100m fine for mis-selling 'precipice' bonds". London: The Independent on Sunday. Retrieved 30 August 2009.
  27. ^ Anna Morser (October 2008). "Banking on Bloodshed: UK high street banks' complicity in the arms trade" (PDF). War on Want. Retrieved 2 November 2012.
  28. ^ Sweeney, John (21 September 2009). "Tax inquiry into Lloyds off-shore". BBC. Retrieved 23 September 2009.
  29. ^ "Q&A: Panorama on Lloyds offshore". BBC. 21 September 2009. Retrieved 23 September 2009.
  30. ^ http://www.thisismoney.co.uk/money/markets/article-1680648/Lloyds-under-fire-after-BBC-tax-revelation.html Referenced 13/03/2013 16:20 UTC
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